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tv   Mad Money  NBC  October 13, 2012 3:00am-4:00am PDT

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i'm jim cramer and welcome to my world. >> you need to get in the game. >> firms are going to go out of business, and he is nuts! they're nuts! they know nothing. >> i always like to say there's a bull market somewhere. >> "mad money", you can't afford to miss it. a lot of people want to make friends. just trying to save a little money. my job is not just to entertain, but to educate you. call me at 1-800-cnbc. the s&p dipped, and the nasdaq climbed .17%. we have to look forward, not back because next week we'll be in the thick of earnings season where individual stocks control almost 100% of the day action. what's our game plan? first monday we hear let's get right into it from citigroup. hey, look, nobody was crazy about any of the banks that reported today. wells fargo, jp morgan. that's ridiculous. that group is cheap.
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the companies are making tons of money, and they'll be soon returning billions of dollars to shareholders and making gobs of cash thanks to a robust mortgage market. there won't be enough business to offset the weaknesses in the emerging market, i want you to stick with jp morgan, buy more wells fargo before i venture into the world that is citi. tuesday coca-cola reports. ko, knock-out shot the lights out last quarter. i bet it's better because the dollar has weaker than where it was from the last time they reported. that's going to make for an upside surprise for this huge international company. my charitable trust has been buying the stock and for the incredibly robust asian sales. this is a well run company. we get goldman sachs results on tuesday too. what kind of businessman is lloyd blankfine? has it made up for the dirth of mergers and acquisitions?
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i have to say this is probably the least clued in i have ever been about whether goldman has a lot of power or not. i don't know if the business is coming back. then there's johnson & johnson. new ceo. we're hoping that he lays the ground work for splitting up the company ala abbott labs. this time breaking into pharma and devices and consumer products. change worth $15 instantly if he just pulls that trigger. ibm reports at the close. consistent grower, taking share. new hardware product cycle. haven't had that in a while. very few stocks have what ibm has. my charitable trust thinks that consistency. wednesday we hear from bank of america, and the great untold story about this company is how is it t has systematically been cleaning up its balance sheet buying in expensive debt left over from the bad old days with fewer foreclosures and major settlements for liabilities. bank of america is putting that ugly past behind it. bank stocks are still getting hammered next week like they
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were today, and you come in. you know what, probably want to buy bank of america here for that wednesday quarter. remember that last quarter from pepsi? just like coca-cola, terrific. restructuring already paying dividends. i continue to believe pepsi's international growth will propel this stock and give it the important upside it needs. i think break down the strength of a particular brand on a country by country basis. not just because i like mountain dew. pepsi, will they address healthy eating to push back on sodas and the consequences of bottomless bowls of doritos. it's healthy week here at nbc universal. it's worth asking. on thursday morning union pacific pulls into the station. this company gives you so much. it's great on its conference call. what's the assessment of the coal industry or fracking or plus union pacific has multi contracts. you want to be in this stock at 115, 118 sweet spot. chipolte reports after the close. this is a battle ground. a bunch of boutique investment firms saying they see same-store sales are back on a higher
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trajectory, above 8, and others that said sales would disappoint, below 8. we hear about 9% to 10% same-store sales gains it's going to be another down leg here as there are a lot of short sellers to push the stock lower. people -- they talk about how mobile phones are killing the pc, but how about a company that gets used numbers from -- i'm talking about google which we hear from thursday. a company that is still taking share from everyone else. i think google is a good deep in the money call going into that quarter. talk about contrast. microsoft reports the same. here's a first. the head of the brand new product cycle, windows 8. multiple analysts are taking you to look for a shortfall for microsoft because the ailing pc market. this is amazing because they almost always tell you to buy
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microsoft hfd a new product cycle. my question is how bad really will the quarter be? i bet it's not that bad. the company does fine. i hi the product cycle is meaningful, but in the end the growth will pale in comparison to google. it might at last be monthing but dead money because google is inexpensive. friday morning we get results from general electric. in its last few meetings ge has been the most bullish i have ever heard them since jeff immelt took over. it will be hard to believe he won't be upbeat on this call and talk about a bountiful boost. keep trying to be big ner the stock. honeywell also reports friday. this is about the only major industrial that has consistently guided above the street and will reaffirm with upside during this period of trouble. the world has slowed. i do fear the streak may be broken. if so, maybe you can get in the 50s. it would be a steal. are we ever going to go back to see where oil is at $80? so many bears tell me it's headed to 08.
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you know who will fill us in and who has the voice of authority? they hear -- they speak friday morning. this company will go major oil company by major oil company and country by country to give you its outlook and see who is spend and with what i think is a permanently higher oil price. i believe we'll be ready for a guide-up for 2013 of the stocks my charitable trust owns twlsh may be the cheapest as oil hangs out at $90 or above. one last thing. on tuesday we have the next presidential debate. the last debate was a clarity call to buy coal stocks. in fact, take a look at this chart. it's hilarious. is this a gallop poll showing rom my's surge? no. it's a depiction of btu. peabody energy in the week before and the week after the debate. look, the romney wins, the one that led off with the governor saying he would be more pro-coal than obama. if you think that obama has learned his lesson and comes out swinging, may i suggest that you buy puts on btu because that
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will be my best short on the week if you think obama has his game back. right back to there. bottom line, a lot of earnings coming out mechanics week. a lot of process, all right? you got to really process everything. just make sure you stop, look, and listen before you do anything haste. where i a ton of information. we'll do our best to process and profit in one of the busiest weeks. greg in my home state of new jersey. greg. >> a familiar boo-yah right back at you. >> caller: with a travel spot taking a hit today, what do you think the future prospects are for priceline given the economic sluggishness particularly in europe? >> well, remember, it's actually been a bishop so far. hotels.com. i hate to put priceline in the same sentence as travel zoo. travel zoo has been defrocked here. i like priceline. i think it's still a good stock. it's not my favorite because it's such a high dollar amount sshgs and people keep trying to ring the register to raise cash in the name.
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earnings season is going to be overwhelming, but now you have a list of stocks to focus on and process. don't forget, the best short of the week may, indeed, if you think the president has game to bet against peabody energy when you go to work on monday morning. "mad money" will be right back. >> coming up, check this. with 25 drugs in development and a major fda advisory panel meeting next week, cramer is examining a stock that could be the next big thing in biotech. stick around. you can't afford to miss his prognosis. later, on to trot? all this week cramer is finding the stocks that the big money is most likely buying hand over fist, and should continue to rise until year end. tonight the temperature reaches a fever pitch. he adds two biotech bohemaths to his hot list. don't move. the big reveal and just ahead. plus, "mad money" at the movies.
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cramer has always had a certain theatrical flare, but tonight he shares the stage with an authentic star of the silver screen. warner brothers argo hits theaters this weekend and cramer is welcoming its baddest cast member in to talk business. you won't want to miss cramer and kremston on one screen. all coming up on "mad money." >> don't miss a second of "mad money." follow@jim cramer on twitter. have a question? tweet cramer. send jim an e-mail to "mad money"@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to "mad money."cnbc.com. so anyway, i've been to a lot of places. you know, i've helped a lot of people save a lot of money.
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different strokes here. you want to be a good investor, you immediate to understand that manage your money requires more than simply being able to coldly analyze each new piece of data. look, we're not computers here. we're human. with all the weaknesses that entails. when you are running your own portfolio, you have to be able to compensate for those weaknesses. for example, after just a lousy week like the one we just finished, there's a natural urge to try to ignore --
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>> the house of pain. >> nobody wants to watch the market go down. yet, the moment you stop paying attention, that's when you really do get crushed. that's when you lose it all. i know it's hard to keep doing the homework. it's hard to stay engaged with your stocks after a week like this. especially when we all know there are many weeks where it doesn't go your way. that's why we speculate. why we fool around with these tiny low dollar amount stocks now and then that are super risky. we talk about them in speculation friday. they're risky, but they can generate tremendous returns if everything goes right because speculation is the one part of this game that is undeniably exciting. not just some of the time, but all the time. let's give you a good example. take nps. it's an orphan drug developer that i recommended back on september 18th. it was at $8.24. this company had a big catalyst coming in mid-october. the stock shot up 19% today on some positive comments from the
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fda that seemed to indicate that nts's drug will get a positive hearing when they go before the fda panel next week, and it's now a 32% gain in just three weeks. that's the power of speculation. you're not going to get that from att or verizon. i like those stocks very much too. i think you should ring the register. there's no sense in being greedy. bulls make money. bears make moneyy. the risk-reward got less favorable heading into next tuesday after today's rally. monday gives you a chance to take some profits. well, what do we want? we want to own the next nps. i've got another orphan drug play for you tonight, and that's also going up in front of an fda panel. this one is next thursday. talking about a company called isis pharmaceuticals, symbol isis for all you home gamers. it's a company that's developed an entirely new rna-based drug discovery platform that is down
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right revolutionary and is the buzz of the industry. this platform has given isis a huge pipeline. 25 different drugs in development, and every year the pipeline is expanding by three to five new ones. isis is an innovation machine, and that pipeline is real impressive especially when you consider this is just a 1.27 billion dollar condition, and this is going to attract people. i say it with some chagrin, but it's a $12 stock, and that's going to probably make you more interested. there was an article in bloomberg with this staggering title -- "toddlers facing heart attacks await ruling on new drugs." i'm going to read you some of this because one of these new drugs is from isis. here's the quote. like any patient at risk of a heart attack, kennedy thompson has been counselled by her doctor to eat a low fat diet and take prescription statens to reduce her cholesterol unlike others facing heart disease, kennedy is 3 years old.
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she has a rare genetic disorder that has pushed her cholesterol level to four times that of a healthy adult. if left untreated the disease called homozygus familiaral hypocholesterol -- or hofe can spur a patient's first heart attack or stroke in their teens. this is a rare condition that aflikts only 3,000 people in america and another 3,000 in europe, but it causes their ldl cholesterol toob higher. i don't mean like ldl at 130, and you feel like you ought to eat less ice cream because that will get it down to where it should be. maybe some grapefruit. the people with this condition have ldl close to 100. even with statens, the ordinary life expectancy is just 33 years. that's where isis comes in. it's coming up before an fda panel next week. that equates to a 25% to 47% reduction in risk for
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cardiovascular disease, and we know this is -- now, okay, before i just tell you just got to go buy, buy, buy, there's a contingency here. there's another company with the cholesterol lowering drug for the same condition, and that's going before an fda panel on tuesday. aegirion. now, aegirion has had a strong clinical trial result with its clinical trial, and, in fact, it causes a greater reduction, so why am i recommending isis going into this pair of fda meetings? it's all about risk. ultimately i think both company's drugs will end up getting approved despite safety concerns surrounding each of them. however, if things go the wrong way, the down side risk is much greater for aegirion. here's a tiny $400 million company with a tiny pipeline. isis has $306 million on its balance sheet. if the fda asks for more safety data and isis is going to hold up a heck of a lot better.
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the other thing is that isis's ldl drug also produces other types of fat in the blood, and if they can eight approval to expand the market beyond this one condition into other types of patients with high ldl levels, now we're talking about a billion dollar market opportunity. plus, it's not just about this one drug. they have this whole drug discovery platform i mentioned. for the last century pretty much every pharmaceutical company out there has designed drugs that work by binding to individual proteins within the body. isis has a different methodology. they develop drugs that work by binding to rna, which is the substance that affects the expression of genes. basically rna takes the blue flint from your dna and turns it into a various protein that are the basic building blocks of life. you can change what the rna is doing, then you can potentially treat a whole host of diseases by changing what the body is doing in a much more fundamental level than what we seerom traditional drugs, and that's why isis has partnership with big pharmaceutical companies. those partnerships could
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generate ultimately maybe as much as $3.5 billion simply in milestone payments as they develop the 25 drugs i mentioned in their pipeline. now, everything is dicey when it comes to biotech. you have to be careful. this is going to be a wild trader next week. i have a strategy. if you buy it, you must first lyndon orders. don't pay up. crazy. i think isis is worth going, but i don't want you chasing the stock. you can buy half your approximation monday, but do not pay up for this, and if it spikes based on what i am talking about here, let it go. take a pass. then if aegirion gets it on tuesday, isis will pull back hard and that's going to give you a chance into weakness to buy more ahead of thursday meeting. here's the strategy. don't chase it, and half after the aegirion panel on tuesday. take advantage of any dips. i envision 12 and then maybe it drops to ten, and you buy more. maybe it doesn't drop at all,
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and you have half a position. here's the bottom line. if you want to stay -- >> we're on to the next. you tau take your profits and roll them into isis -- remember, limit orders or we take a pass. >> coming up, hot to trot? all this week cramer is finding the stocks that the big money is most likely buying hand over fist. tonight the temperature reaches a fever pitch as he adds two biotech bohemaths to his hot list. don't move. the big reveal is just ahead. the wheat in every mini-wheat has gotta be just right. perfect golden color. rich in fiber. my dad taught me, and i taught my son out there.
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all week aye been telling you about this fourth quarter momentum trade where they take the best performing growth stocks and anoint them as winners for the rest of the quarter. this is all about the mechanics of the market. it happens every year. bond managers want to show their investors that they own the best stocks out there, and they own a lot of them, and that's especially true in an environment like this one where so many hedge funds are lagging the market and there's so few really hot growth stocks. these guys are fighting for the professional lives, people. they know they can't afford to have their clients ask them you moron why didn't you own google or amazon or visa or master card? what's with you with the not having the ultra salon or the tractor supply? couldn't you see sher win williams, they were plain as day? these are all hot stocks that i have highlighted this week. i believe they have been anointed by these portfolio managers, and that makes them, well, the next best thing to unstoppable. obviously if it's a really bad market, it won't matter. i'm going to stay focused on all the hot list between now and the last week of december, and that
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brings me to two new ones. we have two last -- the last anointed names to round out the series. these are two smoking biotech stocks that have been rallying like crazy. first one is alexion, and that is up 56% for the year, and then there's gilead which is up 66% over the same period. alexion is an orphan drug company that the lead drug solaris that treats several incredibly rare blood disorders known as pnh which if left untreated can lead to anemia, clotting, and death. you know that we favor orphan drugs on "mad money" because the government gives them all sorts of extra goodies, like tax incentives, years of marketing exclusive ift, but best of all, when you have awe drug that treats an ultra rare often lethal condition with no known cure like alexion does, there's basically no limit on how much you can charge for the thing. after all, what price can you put on a human life?
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alexion is working hard to answer that question because solaris may be the single most expensive drug on earth. a year of treatment can cost more than a half a million dollars. that's why even though not very many people have the blood disorder, solaris is already a billion dollar drug, and at the end of last year it got fda approval for an extremely rare kidney disease that can be deadly. ever since solaris got fda approval back in 7dz, it has been beating the street's expectation. how big could the drug be? for pnh solaris could be $2 billion in sales around the world. this kidney disease could mean an additional $900 million in sales, and plus a treatment for a number of other diseases, and the data on each of these are pretty darn good. altogether they could be worth as much as $2.5 billion for this one drug. alexion has a drug potentially to do $5.4 billion in peak sales up from just $1 billion right now.
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that's not a terrific long-term growth trajectory. i really don't know what qualifies. now, obviously it's not undiscovered. the stocks have a huge run. it's up 231% since i first identified it two years ago on october 2010, and i have been reiterating it time and time again, but i bet it keeps rallying until the end of the year. as hedge funds and mutual funds -- i want to show investors they own such a fabulous winner. this is the stock that when you get off the portfolio manager desk they all when is per how did i miss alexion? they didn't miss it. they're buying it. how about gilead. this is a much more tried and true and multiple product lines. it's got a tremendous hiv franchise. they're a top player in the hiv market. it just launched a quad pill. combines four of its hiv pills into one pill. you take it once a day. it's in treating hepatitis c. another thing we talk about endlessly on the show because it's so big. it's a chronic condition that can lead to all sorts of liver
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problems and is the number one cause of lir transplants in the u.s., even as the disease doesn't actually go away after you get a new liver. there are a number of companies that are working on drugs that potentially could revolutionize the way we treat help c. when gilead acquired pharmaced last november, in a deal that, by the way, was just poo-pooed everywhere, they became the leading contender. since then, some of the other players like bristol-myers had to drop out of the race due to safety concerns about their own therapies. this hepatitis c market is vast. it could be worth $18 billion six years from now, and if gilead's drug is approved, it has -- it has faced redevelopment. what's so great about the help c drug? the only treatment is to get injections of interfuron, powerful anti-viral for 24 weeks. okay. that's half the people, and those drugs have some truly horrific side effects. even if you go through the whole regiment for the full 24 weeks there's only a 50-50 shot that you'll be cured. now, get this.
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gilead's drug is better in every way imaginable. you don't have to inject it. you take it orally. not for 24 weeks, but for just 12 weeks. based on the trial results we've seen so far, the patients would have a much higher chance of actually being cured. some cases as high as 100%. if the fda approves this drug, i'll tell you it will do $5 billion in sales by 2016. $5 billion. that's a big deal. makes $11 billion that gilead used to -- look like a pitance even though there was a lot of chatter that gilead lost its mind. more important, these companies don't need a strong global economy in order to keep growing. they're secular growth stories and will continue to make money even if the world economy smashes into a retaining wall wrush don't stop saying life-saving medicine because of a recession. here's the bottom line. at least for the next two and a half months gilead and alexion are going higher because they've been going higher because they're already hot stocks, and every growth-oriented portfolio
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manager out there wants to show their clients that they own what's hot and not -- and what's not isn't in their portfolio. that means these stocks are anointed for the fourth quarter. you can pick them up between now and year end on any weakness. next speak to elizabeth in florida. >> caller: hey, cramer. i want to know lexiotica is controlling market share and off set concerns over the euro, so does this italian monopoly seeing you a 20-20 buy or a glaring pass? >> i was over at the haley's, and we were watching "60 minutes." the first thing i did was hit up luxotica. it was a really good business story, and i felt the first thing i said was everybody in the world knows everything about luxotica. what added value can i have? when everybody knows everything, it's too late to own. need a dose of year-end momentum? it is amazon, google, sher win victims, it is ulta, alexion.
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s visa, master card, and gilead. wow. don't move. the lightning round is minutes away. >> coming up, "mad money" at the movies. cramer has always had a certain theelt cal flare, but tonight he shares the stage with an authentic star of the silver screen. warner brothers argo hits theaters this weekend and cramer is welcoming its baddest cast member in to talk business. you won't want to miss cramer and krempstop on one screen. [ male announcer ] this is rudy. his morning starts with arthritis pain. and two pills. afternoon's overhaul starts with more pain. more pills. triple checking hydraulics. the evening brings more pain. so, back to more pills. almost done, when... hang on. stan's doctor recommended aleve. it can keep pain away all day with fewer pills than tylenol. this is rudy. who switched to aleve. and two pills for a day free of pain.
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it is time -- it is time for the lightning round. ♪ >> buy, buy, buy, sell, sell, sell. play this sound, and the lightning round is over. are you ready, skee-daddy? it's time for the lightning round. let's start with sean in new york. sean. >> caller: boo-yah, jim. talking about eli lily. >> here's the deal with lely. downgraded today. i will continue -- the morning times where heed -- i think lily is still a buy. david. >> caller: yes. >> go ahead, david. >> caller: >> i don't like the -- i don't like cooper tire company. let's go to, mark wrrj.
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>> caller: fio. >> too speculative. people want to recommend it as a takeover basis. i'm not going to do that. i'm sorry. >> let's go to merad in new york. >> caller: hi, jim. how are you? >> how about you? >> good, good. i want you to talk to tmi. >> they kinder morgan partners. kmp. they report next week. let's take a look at that one. carol in michigan. carol. >> caller: hi, jim. boo-yah. >> boo-yah, carol. >> caller: yeah. i have a question about some video stocks. i purchased them on monday at $13.25 20. >> you know what, it's a semiconductor company. amd blew up last night. they've got a lot of nvidia, let's wait until the boot comes down more and it would be a seller even though you just bought it here, and that's the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade.
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♪ >> all right. here we go again. >> what on earth does a beauty retailer have to do a w a tractor supply store? they have a long-term secular growth that makes money managers salivate. >> chief merchandizing officer. >> i don't know where he gets his stuff. is he very good. i don't think wefr anything to worry about. ♪ such a pretty dress such a pretty smile ♪ ♪ you're so pretty >> after the break, i'll try to make you even more money. >> boo-yah from sacramento, california. >> it was a street corner. >> 79 living in that -- 77 ford fairmount.
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it was really cool. >> we love the way you sleep in cars out here. >> it's a little nasty, but for a date it's home-free. your place or mine. never had to worry. >> i immediate your best medical advice as soon as possible, doctor. i'm not too good at anatomy, but i got a bad pain in my option area, and it's spreading to my wallet area. >> i'm not a proctologist. ♪ >> clear! there's a pulse. the bull's alive. the bull's alive. >> what about the street? that's biagio. >> don't you dare drink it? >> smirnov. kettle one. >> if you're caught, i won't defend you. >> captain morgan. >> jose cuervo. >> you don't want to spend too much money, buy johnny walker red. it does go down like paint thinner.
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>> 67-year-old man running around on the set. >> or pay more for johnny walker black, which, of course, my staff didn't bother to get because they switch to drinking gold. platinum is my drink of choice when i'm not sipping cheap scotch on my dirty linoleum floor. ♪ >> they're going to fire me. [ male announcer ] research suggests cell health plays a key role throughout our lives. one a day men's 50+ is a complete multi-vitamin designed for men's health concerns as we age.
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>> something that has a much larger bearing on you and the stock market as a whole. >> let cramer be your guide, your sounding board. >> i'm having a hard time with my favorite stock. >> i know you can beat these professionals. >> and your coach on the road to
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financial independence. "mad money", week nights on cnbc. ♪ there are only bad options. it's about finding the best one. >> you don't have a better bad idea than his? >> this is the best bad idea we have, sir. by far. >> "mad money" has been called an untraditional business show. we talk about stocks, how to profit from them. i try to teach you how the stock market works, how you can make money from it, but how about the way real business works? business itself. you know, supply, demand, inventory, selling, wholesaling, besting the competition, or trying to wipe them out entirely. i got to tell you, i do not do enough on that topic. many of the, nobody does except oddly, one show that i watch religiously. a show i tell my daughter when we watch it together is the best show about business on tv ever. even as it is a fictional show
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and is about an entirely elicit trade, the drug trade. yep, the best business show on tv is "breaking bad" on amc starring the great serial emmy award winning brian cranstop. if you already run a small business, believe me, you could learn more from the parallels of "breaking bad" than you could from a dozen books on the subject. good to great has nothing on "breaking bad." it is about the guy that wants to be the steve jobs of crystal meth, but coming up with a better product, dealing with distribution, it is all in there, and that's why i am thrilled to be able to talk to brian cranstop who also stars in "argo" the iranian hostage crisis era spy movie that i just saw, and, by the way, it is fabulous, and i did go to see it because i hearted brian was in it. brian cranstop plays cia officer jack o'donnell. you saw him in the clip. mr. cranstop, welcome to "mad money." >> jim, thank you so much for that introduction.
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that's fantastic. i saw you the other night talking to a reporter, and you caught my eye, and i went, hey, there's jim cramer, and then she caught me back to a question, so i didn't get a chance to say hello. >> i'm honored that you noticed me. brian, i'm just thrilled to have you, and i thought that this movie that you were in, "argo" was very realistic. i understand that you spent time with the cia learning how to do this character best. >> well, it was interesting, because i went in to langley, virginia, cia headquarters thinking that i was going to experience something completely different than i was familiar with, and what i came away with is that, yeah, there are similar aspects to it, naemly that you have to be so secretive and clandestine, as we want in our spies, but there were some similarities. you know, they complain about some of the bureaucracy that they have to deal with.
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the stale coffee in the break room. you know, having time off to spend with your spouse and things like that. there was some very common things that i got too, and i was trying to get a baseline character to be able to portrait that honestly, and in ernest so that when they watched the movie they went, yeah, he got it right. >> well, that brings me to the logical question is if i am a member of a cartel, if i were involved in this elicit drug trade, i have to believe that "breaking bad" is an incredibly realistic depiction of how it works. >> it is -- it is. there is a heirarcy. it was on a level of organization that is emblematic of a successful business, as you
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said in the opening. no longer are they reduced to this kind of dirty kind of corner street dealing. this is a high-end very efficient operation, and very smart. they're very careful. in one way when i play a guy like that it makes me feel, you know, accomplished in that, but i start thinking how this is really happening this way. we're in deep trouble because there are so many layers to this that we don't know about. >> well, if you don't mind, for one moment, i would like to play a clip of you. you're playing walter white, the ceo of a small business, and we all revere small business in this country from the debates, so let me just show you this one clip. just a sec. >> do you know how much i make a year? even if i told you, you wouldn't believe it. do you know what would happen if i suddenly decided to stop going into work?
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a business big enough that it could be listed on the nasdaq goes belly up, disappears. >> there we go. business listed on the nasdaq, and, yet, the character you play i think is somewhat motivated by the fact he was not in a deal that was the biotech equivalent of facebook. >> that's good observation. that's a very good observation, but let me ask you this, jim. would you have recommended your viewers invest in an operation such as this? >> i like a business that has a superior product with a ceo who has a superior attitude that is going out and does not have a des bugs network and has to tap into someone's distribution network, and then ultimately runs the whole thing top to bottom because that's what steve jobs did with apple. >> that's true, but one of the things you always talk about too on your show is the risk factor and going into a business like walter white's that's very high. >> well, i think that's true, and if we were to look at, say, the s-1, the ipo document for
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mr. white what we would see is that the level of risk factors might exceed most, but then again when we see the cash it throws off, the only other time i have ever seen a pile of cash that's as big as what you had in "breaking bad" in the locker -- well, your ex-wife had -- would be steve jobs' $100 billion that apple accumulated. >> yep, he is an empire of himself is what he created, and that's walter whitary ambition as well. >> when you are doing it, do you think -- my daughter watches the show. she said, dad, it's shake peer. stop it with the business. you do try to be as realistic as possible at all times to what a guy has to do to build a small business even in a trade that is not legal. >> absolutely. i mean, i think a lot of people risk connect the idea of an actor being a liar and
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pretending they're someone they're not, and the whole focus of an actor is to find the truth, find the honesty in characters. for instance, when i was told that i was going to be playing this role, the first thing i did was contact a professor head of the chemistry department at university of southern california and was able to follow him around for a few days just to get the sensibility and to understand that universe, that culture of science because it's been a while, and so you become like a student of it, and it's fascinating now at this juncture to realize how important chemistry plays a part in our society and now in creating this product, and it is. it's a business empire. >> well, anyway, brian, thank you so much for coming on the show. obviously, we're not trying to encourage anyone to be in drugs or trying to encourage anyone to be involved in anything like that, but a realistic depiction of business is hard to find, and you have done it. brian cranstop, star of "amc's
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"breaking bad" and star of "argo," which is my pick to be the academy award win are for the best movie of 2012. thanks so much. >> put out the buy on that one. thanks, jim. >> "mad money" is back after the break. thank you, brooirn. coming up, liftoff. soaring to the sky with an ipo today. will the laws of gravity soon bring its stock back down to earth? or can it continue to fly? get cramer's take. i was once used for small jobs.
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>> sometimes when you get it right, it doesn't matter. this morning a stock on the michelle public offering price the add $28 per share by morgan and goldman and opened as high as $48. it was incredible. 48 like that. that's 40 times sales. not 40 times earnings. 40 times sales. that makes it the single most richly valued company i follow. $7.5 million with no earnings. it's spending aggressively. you tend to save 50 cents on every dollar that you spend. by putting their data in the cloud. you think the whole thing is absurd. it's so overvalued it will take your breath away. it's as if we had gone in the way back machine to the dot com bomb blast.
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here's a shocker. you shouldn't blame management or the underwriters for this traversy of evaluation. this was no facebook. they really did everything right, these guys. management didn't choose to sell on any of the deal. the insiders many of them bought on the deal. neither morgan stanley or goldman sachs raise the the price to where the demand was so not to be too greedy. the company allowed 14% of its stocks to go public. it's not like a sliver deal. the most important, the company's chairman and co-ceo wasn't upset that the bankers left so much on the table. we were told on "squawk on the street" that he wanted the deal praysed to as close to the comparables, the other companies in the space, and not a penny more than that. he didn't care about extracting that last dollar. they were neglect but -- versus the greedy rav nuss buyers. even as everyone involved with bringing this deal did
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everything right, we're stuck with an closing that immediately took the country stop to the stratosphere evaluations. this is a tech company coming public at a time when the s&p -- almost 20% has growth to go around, and it's become a pathetic parody, and the personal cputer market away from apple was shrinking and spending on hardware is being detailed because of the cloud and the slowing economies. when two cell phones are crushing everyone else and though one wants a pc, there's a terrible derth of high growth companies to choose from. ended up reaching the work day. even though the price was richly valued, the immediate for a management portfolio, any manager out there drove that price. the institutions got so little that they fear it's better to get a position in the aftermarket, and that's what you saw was the aftermarket buying after the opening buy which gives them -- that above the actual price is below where it opened. $28, right, and then they pay at $48 to get, you know, to buy it and it goes up.
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as work day opened at 48 and still logicals, that is when you consider the ice cold sector, the needy buyers, the reasonable sellers, and it makes a ton of sense that the stock opened at a $20 premium, even as you need an oxygen mask to fathom it all. stick with cramer. >> i like to say there's always [ female announcer ] what does the anti-aging power of olay total effects
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hey guys, can i get next? here you go kid. hey aren't you. yep. vogelsong and posey did you check the rating? the rating? yeah, it's simple. always check the rating symbol on the front and read the content descriptor on the back now that's a good call. thanks guys. ahh son, i don't think this game is for us. maybe you should get this one. this kid can play. [female announcer] for more information, visit esrb dot org. >> i like to say there's always a bull market somewhere, and i promise to find it just for you right here on "mad money." i'm jim cramer, and i will see

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